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tv   After the Bell  FOX Business  February 5, 2015 4:00pm-5:01pm EST

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you got twitter and go pro- [closing bell ringing]. linkedin coming up. a lot going on after the bell. don't miss hour, david. david: a lot of earnings coming in. bells are ringing on wall street as we speak. it is a banner day on wall street. all indices at least 1% or higher. nasdaq at exactly 1%. russell 2000. all across the board. not only big stocks i mentioned but the small and medium-sized stocks of russell 2000 down at bottom. up about 1 1/2%. it is a good day across the board. a critical day for "after the bell" which starts right now of the david: getting right into it, we have michael musio, fbb capital partners who expect as low rate environment to continue. dave ellison of hennessey fund who is bullish because of strict banking regulations. he likes some of those regs. we'll find out why. peter kenny who says a close eye
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on earnings reaction is absolutely necessary right now. phil flynn in the pits of cme. phil, i want to start with you. talk about oil first of all. i say this volume it in oil is all -- volatility in oil is all about central banks where we don't know where they will go next. we don't know if a rate hike by the fed. we don't know what china will do. we don't know what happens with the euro. central bank volatility is causing oil volatility. >> i think exactly correct, dave. but also, when you look at that volatility, you also signaling a bottom. those are two things. with you look at cost of oil, when it bounced off $44 a barrel. which is 17 1/2 year trend line, you do have the uncertainty in the market it definitely moves oil. we're seeing that today with reaction of dollar being down, euro going back up. that is it. we also had breaking news on oil, just before we went on the air.
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saudi arabia for the first time since last september, actually lowered the price of oil, raised the price of oil to u.s. customers. that could be a sign that the price war from saudi arabia could be ending. it could be just trying to catch up with the market rally but it could be a sign that maybe they said enough is enough. we're going to stop pumping as much oil into the u.s. that is the reason why the rally extended later in the day. cheryl: got to protect their invests and protect their production. p say that they are overproducing. michael, one of the things with you, lower oil prices and lower gasoline prices the consumer. we hope to see the consumer to come back. we know you like consumer discretionary as a sector. we're starting to see gasoline going up a little bit. we wonder if you're nervous? >> no. we come up but off a low base. consumers are in the early mon of seeing flow through of savings at the pump. if you look at move in oil from
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september through where we are today, even with this little bit of a bounce or expanded from last july, from six or seven months out we think we're in the early innings of having a little bit more cash in their wallet to spend elsewhere. that's why we like discretionary. david: peter this earnings season is like the market itself. not as quite as wild as oil but it has been up and down. some stocks like apple beating it big time. other stocks really disappointing. can you gather anything from what is happening with earnings? >> actually i think companies that have been most exposed to a stronger dollar play really held remarkably well, if you look at apple, you look at disney, look at some of these multinationals had enormously positive q4 earnings season, it speaks to the fact that many of the s&p 500 companies that you would think would have a negative, feel a negative impact of a stronger dollar have done better than expected. 70% of the s&p 500 companies that have reported have actually done better than consensus
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expectations of the so on the corporate front, earnings have been better than many people expected that is providing some buoyancy to a market that is whipsawed as direct result of very volatile energy trade. cheryl: very, very true. we had a lot of economic data. europe is a mess. david, ahead of jobs report i know the unemployment rate has been a big area of focus for you. a lot of talk about the ceo of gallup saying the u-6 number, correctly reported but we're not paying enough attention to it. we're getting report for tomorrow. what are you expecting and how much of a market mover is it going to be? >> i think it has been moving market higher a couple of years as unemployment has gone down. i think it was reasonably good christmas. looks like disney is doing fine. airports are full. if the flights aren't canceled, so i think, you know, people get jobs, they spend money, it helps
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economy, helps deaf sir, helps companies. i think we'll see a decent number and i think unenemployment is important reason why the market rallied last couple years. david: phil, i want to bo back to breaking news about saudi arabia, their attempts anyway to boost the price of oil. if they succeed, by the way today, we had 5% pop in the price of oil. if what you say really pans out, we could see a much higher spike. hold on a second, before you answer that we got earnings from adam. go ahead, adam. >> want to talk about linked in. revenue a big beat. 643 million. street was expecting 616 million. earnings per share came in as well a beat. street was expecting 53 cents. adjusted earnings per share, 61 cents, david. david: good beat on that. we'll bring you after-hours when we come back. phil flynn, there we go. we see a pop after-hours as a result of those good numbers. if nor a fact we see oil prices go up, gas prices will two up
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more than they have been the past couple days. that means consumers will have less money. might that have trickle-down effect to the economy in a bad way? >> i think it will. the truth of the matter, gas prices even with a price spike will be lower than people expected they would have been a few years ago. i don't worry about that threat. i think rising cost of oil might be a good thing, might help shale producers keep guys on of the what is interesting about this, there is a new, there is a new king in saudi arabia and the first major price point that we saw is not, you know, saudi arabia trying to undercut producers by lowering cost of oil. they raised the cost. that could be significant. it could be a change in oil policy. they got rid of their entire energy board last week. the king put his son on the board. could be -- production war could be over. david: very interesting.
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cheryl: dave, we'll hear from twitter in a few moments. i know microsoft is one of the stocks you like and one of the companies you recommend. at the same time space all the companies are in, google, microsoft, apple, facebook, twitter, it is getting very crowded. we talk a lot about net neutrality today? what are your thoughts about tech? guys stand by, getting twitter numbers. adam shapiro in the newsroom. what do you have? >> a beat on both lines, revenue 479 million. street was expecting 543 million. earnings per share, 12 cents. street was expecting six cents. cheryl: twitter earnings coming pretty much in line. that is look at twitter. we want to see the user growth numbers coming in out of twitter. i want to bring in dave on this particular point talking about technology and about user growth. many of these tech names might be maxing out when it comes to growth. are you concerned about that? >> well these models are all evolving. we've seen that with, for example, facebook.
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you know they couldn't do mobile and then they could. i think we've got a growing user base as reflected by the number of phones that apple is selling and samsung are selling. i think it's a question what models are going to work and how the managements deal with it. that is the game of picking companies and creating a portfolio. that's what we try to use. cheryl: my apologies to peter kenny, you do like microsoft as we talk about technology, peter. >> microsoft is going through an enormous reinvention and reapproach to how it is going to sort of harness its unique technology and take advantage of the cloud. and so many other things. microsoft was an absolute outperformer last year. i suspect that the street is looking for more of the same though probably will be a little more difficult this year. but as far as the broader market's concerned -- david: hold on a second, before you talk on the broader market. we'll pick up on the point. we were talking about software. we'll talk about hardware. gopro, company that makes small
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numb cameras. what is the numberings adam. >> street was expecting 5 3.3 million. earnings per share 83 cents. street was expecting 70 cents. david: stock is halted in after-hours trading. that usually huge move. one would suspect it would be a beat to the upside. peter, you want to finish more broad point what is happening in the economy? >> interesting you see these technology companies have been under a little bit of pressure recently. you just mentioned gopro. here is a classic case in point t has been under significant pressure last four weeks as a direct result of apple coming out announcing it may be entering the same space that gopro is in. however you see this beat. a lot of volatility in the numbers. lots of beats and dramatic beats as per the last three earnings reports that adam shared with us. david: yeah. >> volatility continues to be at
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play. volatility has bias to the positive in terms of the space that we're discussing here today. david: let me emphasize two breaking bits of news we'll be following next hour. one saudi arabia in fact is trying to boost the price of oil higher. they have a new change in leadership there, a new king. he has gotten rid of their entire oil ministry as a result as phil flynn just reported. they are moving to lift that price up. that should ease all of the problems in our oil patch. second news is, 2:00 pro, the stock -- gopro, stock is halted in after-hours trading. cheryl: what a heck after beat. did you see revenue? 653 over 580. that is gigantic beat for gopro. david, phil, kenny, peter. thank you very much. david: thank you gentlemen. cheryl: end an of era as cme will close almost all the open outcry pits in july including one pit that has been around for 167 years.
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we'll talk to cme chairman and president terry duffy about the news and company's earnings release which those numbers coming out moments ago. david: i will meet that -- miss that screaming in the pits. will lay offs in oil patches dampen already unstable jobs market, or, would just what happened in saudi arabia change the entire equation? we'll talk about that with the panel. cheryl: dunkin' donuts appears to be getting dunged by growing competition. sales growth in the u.s. slow but ceo has a plan to jolt seas hopes investors will cheer for. he joins us next. ♪ cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess.
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cheryl: numbers a moment ago, gopro posting a huge pete on earnings. david: nicole petallides at nyse. i understand trading is still halted. >> indeed. we've been trying to get a gauge how gopro would be trading. stock was halted after the closing bell, prior to numbers actually being released. the stock was halted but i will tell you earnings per share beat. the revenue beat. they saw growth year-over-year on number of devices shipped, 5.2 million for the year 2014. that was a 35% increase over 2013. the ceo came out and said we're feeling good.
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gopro is one of the best-selling products of the holiday season, at 1000 units per hour for entire quarter. positive comments from the ceo himself. and the stock, which you well know is down over 30% in the past three months. we'll see whether or not we get a pop. he sound very positive and a beat all together. sound like it is shaping up to be a good move for gopro. back to you. cheryl: nicole, thank you very much. david: dunkin brand reporting fourth quarter earnings, beating on revenue and missing on eps, earnings per share as u.s. sales remain kind of sluggish but ceo says he is committed to double-digit growth ahead as it makes a huge bet on china. cheryl: joining us is nigel travis, dunkin' brands ceo. good to see you. let's talk about this because you've been very vocal wanting to move into the chinese market but u.s. sales in the quarter seem to be a problem. you are growing but not what you were quarter prior. what is going on in the u.s. right now which is still the
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biggest piece in your bottom line? >> cheryl, hi. good to see you. basically, i actually feel pretty good coming out of the year. we had a tough october. we grew as the quarter progressed. coming out of the year we felt much stronger. we have a great plan for this year. some of the highlights we'll build on digital success that we had in the last year. i mean 2.5 million perks members is one of the fastest growing loyalty programs in our space. we'll build on that. listening to all your discussions about gopro and twitter i think that is a great space for us to be in. i think when we look at platforms we're excited about the new platforms, croissant doughnut. coming up in the middle of the year our blender platform will give us a range of new drinks. last year was not best year i will say that, but i think this year will be stronger. david: you missed on your growth targets in the past.
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that makes people a little wary about the growth targets for the future. i'm wondering if you're having same problem like companies like coke and mcdonald's, but really great brand companies but companies that can't seem to change with the changing tastes with the american consumer? are you thinking of rebranding your product in some way? >> no. we got no need to rebrand it. as i look at it, we constantly change. we constantly update our products. we actually have positive transactions last year which is the real health of the business. i can tell you now that i feel really good about where we stand for the year. i feel good in terms of the products. we had some record weeks over the past few weeks as we ended the year. so, i don't feel worried about that. yes, we keep up-to-date. one of the reasons for bringing in the smoothie platform is pick up on some health queues people are interested in. we're introducing fresh fruit
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for smoothies. well have a new range of coffees. i think that will be successful. >> you're healthy, all the products you mentioned lower calorie, healthy, going for more natural ingredients. which begs a question. we see what happens with mcdonald's. millenial generation, wants healthy and fresh. a doughnut is high in calories and fat content. are you worried the next generation will force you to get out of the doughnut business? i love doughnuts, they don't seem to be wanting them as much these days. >> cheryl, that is not actually true. we're growing doughnut seas progress sievely over the last three years. doughnuts also not as high in calories as people think. everyone says that all the time but average doughnut is about 130 to 170 calories. much far worse products out there. look at some burritos on the market and check their calories. so i think, it is very good to mix it up with some of the other
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choices that we have. you know, we've got very good smart menu in dunkin' donuts. that means our customers come in and choose what kind of products they want at a particular time. david: nigel, one market that does seem to be well-suited to you is china. it has a small middle class but small for china means hundreds of millions of people. how does china look to you right now because some people are worried about the slowdown there? >> the slowdown forecast.1% which i recognize for them is a low number -- 7.1%. david: if you believe their numbers. i don't necessarily believe their numbers but go ahead. >> so i think it will continue to grow. the middle class you say will continue to grow. what really makes us excited about china, we brought in a brand new franchise last year, shanghai. they're doing well. we had this big deal that we signed a couple weeks ago with one of the world's leading fast-food companies. they're based in the philippines. they really understand china.
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they got 300 stores of their own brand and some other brand there. they have their own supply chain. i think those two companies are going to drive the growth for news china with dunkin' donuts and fine, we can argue and debate what the growth rate is in china. all i know it will continue to grow. david: best of luck to you, nigel. you've been doing well, in many, many areas. appreciate you being here. cheryl: baskin-robbins, same-store sales up 9%. had to throw that in. david: nigel travis, dunkin' brands ceo. appreciate night thank you very much. >> the situation is heating up in jordan after the country's king vows retaliation against isis for the brutal murder of one of its pilots. we're live in jordan next. david: the fcc commissioner is proposing strictest rules ever in the effort to regulate internet? how far will they take this? the former fcc commissioner has an answer. take a listen. >> regulation only grows and it will only get worse from here now. david: is he right? we'll debate that and a lot more
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cheryl: wake of gruesome murder, jordan begins airstrikes and promising an either-shaking response. david: fox news's conor powell live on the ground in jordan with the very latest on the country's reaction. conor. >> good afternoon. jordan's leaders including king abdullah problem mess a strong response to isis and the murder of the jordanian pilot killed by isis jordanian officials say on january 3rd by being burned to death. in the past 24 hours, jordanian pilots and air force launch ad massive barrage of strikes on raqqa, syria. this is known as jordanian, sorry, isis strong hold where he was being held. jordanian officials say they are also telling shepard smith of
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fox news they begun to launch strikes against isis in iraq which is fairly important development here the past few days. many arab countries limited strikes to isis in syria. now appears they're expanding fight in isis. how they will expand the fight in addition to iraq and syria is really big question today. king abdullah went down and met with leaders of the tribe that he was from, his family as well. they are demanding revenge. king abdullah is promising revenge as well. there are big debate and questions internationally how the revenge will be carried out. nobody here in jordan is talking about a ground invasion or ground troops because simply it isn't capable for the jordanian army to carry out those alone. they need the united states. they need europe and other gulf arab countries to participate in any type of ground invasion for it really to be successful. so right now what we're seeing is the jordanian response
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continued and expanded airstrikes in both iraq and syria and continued expansion of the intelligence gathering which jordan does particularly well here in the middle east in cooperation with the international community. but really it is important to keep in mind there just isn't a discussion about a ground invasion or ground troops in iraq and syria. so this war and this coalition, at least for the time-being, guys, is going to be fought with a large coalition and it will be fought for the most part with air power. back to you. cheryl: conor powell. thanks for the live report out of jordan. we have breaking news with regard to earnings. look at shares of pandora. the stock is sinking after-hours. it was down more than 20%. they had a big miss on earnings per share, big miss on revenue. it is coming back a little bit as you see on your screen. a rough earnings report for pandora. this is streaming music service. they depend on advertising for revenue. that stock is taking a hit, dave. david: gopro is still halted.
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we'll tell you what it starts trading after-hours. job numbers will be hit hard by layoffs in the oil patch. will it be enough to turn around a positive trend in the numbers? let's bring in our panel, sabrina schaefer, forbes women's forum, and any rand dozen sew and -- anthony randazzo. cheryl casone. is back with us. we heard about turn around possibly that saudi arabia may produce more oil but we'll see bad numbers coming out texas even north dakota. >> because of what oil companies have to do, they have to plan where they are drilling. this sometimes takes months and years. every major company, conoco, oxy. conocophillips 20% capacity cut for 2015. if you have lower oil prices you will not have oil drills, i don't care what part of the country it is. you will not have that. this is a bad thing for the u.s. economy. david: sabrina you and i and fox
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business are talking about how the unemployment numbers are fake to begin with. the numbers look good because so many people are pulling out. in the oil patch this was positive signs of the what we saw in the employment growth within the oil patch is in the u.s. is something very positive. now that is being hurt bad. >> i think actually this was thinking clear why the economy is not one-dimensional. we can't use one figure to determine how we're doing. it looks bad when people lose their johnson and we feel for those people. part of what make as healthy economy is having affordable goods and services. we have nine million americans depending on affordable food and manufactured goods and energy prices are so key to all of. that while of course we don't want to see peep losing jobs, i don't think it's a lose-lose. david: anthony, we have to move on. start with you in the next segment. fcc making it official to announce their plans to regulate the internet of the they lost last year in the courts. will they have a better shot at
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it this people? go ahead, anthony. >> i don't know whether they have a better shot. it is pretty laid out, first time around they tried to do this. this is bad for consumers, trying to restrict how isps run their businesses is bad for consumers. fcc commissioner is trying to say this is an issue of fairness and this is going to be something that is going to wind up being good for consumers. simply is not because there needs to be the ability of isps to run their businesses in a way where they're not restricted who they're dealing with. david: sabrina, what bothers me i have not heard enough shouting from republicans saying do not do this. the internet is wonderful and great because it is free from government regulation. they're sitting back to let the courts push back. >> i'm surprised by that david. when it comes to innovation and any sign of economic growth, seems as though this administration has to stamp it out. this is perfect example why we want the market to flourish so people have more opportunity. they want to model this after
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the other public utility, telephones which has not been modernized since the 1930s. i definitely don't think we want to go that route. cheryl: david, i want to respond to your report about republican outcry. she said this is a trojan horse. they will use this to get into regulation. david: we know, that circle, we haven't seen the pushback that we need, really strong pushback. the same push back you have on obamacare. we have not seen that with internet regulations. >> ted cruz called it this is obama care for internet. david: i really think it is. we should mention by the way cable companies, they popped yesterday. their stock popped possibly because the fcc is overreaching. let's hope there is pushback on this. tell us what you think by the way. should the government have the power to regulate the internet as if it was a utility? that is what the fcc wants. will this stifle innovation in the internet? send us a message on facebook or tweet us@fbnatb we'll read some
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of your answers. cheryl: it is the end of an era. chicago mercantile exchange closing much of its open outcry pits. how will that impact the trading industry? coming up we'll ask terry duffy, cme group executive chairman and ceo. david: brian williams, retracting his story about coming under fire in iraq. will he be able to withstand the assault he is receiving on social media? doesn't everybody who is a war correspondent ant exaggerate their story as little but did he go one step too far? cheryl: don't forget to tune in tonight with "strange inheritance" 9:00 p.m. eastern time on the fox business network. they will show you some unusual and life-changing items passed down to unsuspects heirs. ♪ at ally bank no branches equals great rates. it's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good.
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>> i want to apologize. i said i was traveling in an aircraft that was hit by rpg fire. i was instead in a following aircraft. we all landed after the ground fire incident and spent two harrowing nights in a sandstorm in the iraq desert. david: nbc news anchor brian williams took wartime exaggeration to a new level, bragging for 10 years about something that did not happen. then, not exactly admitting that he made it up when he was found out. so how is this going to affect his fortunes and fortunes of
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nbc? let's bring back the panel, sabrina schaefer, anthony randazzo and cheryl casone. cheryl, this is tight market, this prime time news market. cheryl: right. david: i'm wondering if nbc can really have him afford to stay on? cheryl: your reputation is everything in the news industry in our business and have the face of your network, the main star of your network come out and say he said something dishonest, this could be a big problem for nbc they have ratings challenges, between the "today" show and nightly news is struggling. this is coming out of brian williams. believe me within the walls of nbc i'm sure there are a lot of nervous meetings right now to handle this. david: anthony, i covered wars in central america for 12 years. i have a war bride as a result of that coverage. every single war correspondent i know has exaggerated about one incident or another. is this different from that? >> it is probably along those same lines. he hasn't been accused of stealing other people's ideas and plain you arism like is a
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cary for instance. he is being accused of upping his streed credit. this that hurts his reputation. this is the not same as taking people's other ideas. we've seen enough people in television journalism survive that. i don't know that it kills him. david: i want to mention to our viewers gopro resumed trading. not as big of a bump. it is up a hefty 3 1/2% right now after it reported better-than-expected earnings. okay, sabrina, back to brian williams, here is what he said to "stars and stripes." they are the ones that blew the whistle talking about a his copper being shot at at rangers game. they came out with article that it wasn't true. i would not have chosen to make this mistakes. i don't know what screwed up in my mind that caused me to conflate one aircraft with another. not hard to figure out why he
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made up the story. he wanted to show off by spicing up the story. that is something virtually every war correspondent does. why doesn't he say it? >> human error anyway. undermines brian williams but undermines mainstream media. too long it has not gotten pushback. if brian williams is making this stuff up, what else is not quite right? many, many more outlets out there and competition in the news. david: let's move on to china, the economy which is slowing down. its unemployment rate is going up and it has to export like crazy in order to survive. bottom line, china is likely to join in the currency war devaluation to keep its currency low and its exports flowing. how would that affect us? anthony, do you have an answer? >> not a china expert but number one rule about china is never assume about china. there definitely looks like the consensus is there is going to be some more devaluation coming, at least chipping away at
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monetary policy a little bit, monetary easing. how much that actually affects china's currency is up for debate and i don't think anybody knows how that will happen. david: cheryl, if we goat close to currency wars, and we're close to it, with you will at central banks making their currency lower. they made they might raise rates in 2014. i don't know if you will. cheryl: you asked the question, david, what does this mean for us? i worry about jobs in this country because we're starting to see the big technology companies bring plants, bring manufacturing back to the u.s. which would be building our economy, hiring americans. i'm worried now, if there is currency war, this does begin some of these u.s. companies may back off on that plan. that could hurt the u.s. david: sabrina, what do you think happens here? >> that is exactly right. we have to worry about our export markets abroad. if value goes down and down then people will choose not tokes port. emerging markets have, should be worried about this as well because they're trying to struggle to have a thriving economy and this is not going to
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help them. david: yeah. they're having to devalue their currencies right now. that is what happened with china and if we get into the whole currency war thing, that could be a problem for the world economy. sabrina schaefer, anthony randazzo, cheryl casone. don't forget catch is a that and myself on "forbes on fox," 11:00 a.m. eastern on fox news. you do not want to miss that. coming up the cme was out with earnings after the bell. this morning's headlines about the deal with the foundation of institution causing the most buzz. we'll talk to cm-e chairman and president, one of our favorite people, terry duffy is coming next. is it our insightful strategies that make edward jones one of the country's biggest financial services firms? or 13,000 financial advisors who say thank you?
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remember, medicare doesn't cover everything. the rest is up to you. call now, request your free [decision guide] and start gathering the information you need to help you keep rolling with confidence. go long™. ♪ cheryl: cme group announcing it is closing most of its open outcry futures trading miss in chicago and new york later this year, ending tradition that dates back to the 18 '70s. david: wow. sad when traditions end. moments ago the company reported earnings, beating revenue and eps just bearly. joining us to discuss all of this, terry duffy, cme group and executive president. you look great, terry. thanks for closing us. we'll talk about closing the pits but we have to talk about oil. i would expect all the volatility in oil, and it is
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dramatic. i haven't seen -- last drama we saw was right before the great recession. is it helping the cme, all this volatility, all these trades? >> well volatility, david, as you know, we talked about this over the years is a component of the trade. it is not the entire trade. there are many other fundamental factors go into moving a market but volatility is definitely one that will increase the trade in and of itself. we saw oil, david -- david: is that good or bad for the cme? >> obviously the volatility is good and it creates more trade. then 8 0% of the trade falls to bottom line of our revenues. so that is a better thing obviously. cheryl: talk about the savings you receive due to closing most of the pits, save for the s&p obviously. 10 million in annualized savings here. so what do you plan to do with that money? you obviously are in a big transition period now with the business. $10 million a year, a lot of cash, what are you going to do? >> cheryl, this was really not an economic decision.
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this was a decision really based on what customers choice of venue of execution they want to. we have mutualization agreements in place with all of our cvms, the merck, board of exchange and exchanges. they were not making requirements. if this was economic decision we could have done this a long time ago. this is decision what is in the best interest of the client. now that the business is literally 1% in the futures pits, time to make the decision to close those pits. it wasn't really about the money on run rate basis of 10 million or whatever the number is going to be. we have to reinvest money in different things as it relates to some trading activity on the exchange. from a revenue aspect, not a big mover. david: terry, let me talk about something, talk about high volatility, something with very low volatility for past couple years now are interest rates. >> right. david: just, there is no, everybody, every prediction about interest rates going up has been proven wrong over the past year. they said or gone down even
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further. of course there are fewer reasons to hedge your future bets if you believe that interest rates are going to remane as -- has that hurt your futures business and interest rates the fact they're so stable now? >> what is strange about that, david, is you're correct, that the interest rate environment has been low but the exposure obviously is if they go up and you are not protected so you're not hedged in the opposite direction of interest rates. david: right. >> but what has happened, dade, is our interest rate complex is up 20% year-over-year in zero interest rate environment. david: wow. >> so when we put out results like we did today, we had five of our major asset classes up 20% or greater year-over-year in january. so the volatility hasn't been there especially in interest rates. interest rates is still our largest product and continue to be our largest product and trading robustly even more than last year with the policies now, that we're seeing in europe, and in asia, are the same ones that we saw in the united states over
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the last couple of years. so qe now, the that has ended in october as we all know. and now people are concerned, even though you're correct, everybody that thought there was going to be a rate move over the last two years has not happened. but no hose when it could happen. cheryl: terry, i was looking right down the quarter, volume at this time was certainly your friend in this quarter that you reported "after the bell." i wanted to ask you about the regulatory environment. >> sure. cheryl: i'm worried with more competition coming in with your products especially electronic trading and proliferation of it around the world, how concerned are you about regulation getting in the way of this? doesn't seem like finra is really stopping their quest to regulate your business. >> we have, we've been highly regulated business our entire careers here at cme group. we've been able to grow our business in the highly regulated environment. i think other parts around the world who have less regulation who will come into the same playing field the united states is under. even now that dodd-frank has been fully implemented for the
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most part here in the u.s. with the exception of some sec rules not being written, in our side of the world, 90% of rules in dodd-frank have been written and applied. we've still been able to grow, cheryl. regulation is a part of life whether in the united states, asia and europe. you have to deal with it and learn to put with it as part of your business plan. david: you are one of the world's best diplomats. you should be the ambassador with russia in your next life. terry duffy, great to see you. >> david, cheryl, thank you very much. >> he is great. investors are in wait and see mode what the fed will pull. we were talking with terry about the trigger to raise rates. one investor says it will not be this year. we have details coming up. david: who better to ask how investors prepare for uncertainty than our own charles payne. this guy has nerves of steel. what is he doing next? he will join us to tell us. cheryl: that's a good picture. >> hi, everyone, i'm
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gerri willis. coming up on my show at the top of the hour, $22 billion, that is short fall taxpayers face from president obama's student loan forgiveness program. more debt, more problems. one of the big consumer stories coming up on "the willis report" in just a few minutes. our experience is one reason 100% of our retirement funds beat their 10-year lipper averages. so wherever your long-term goals take you, we can help you feel confident. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. call us or your advisor. t. rowe price. invest with confidence. "what is it that we can do that is impactful?" what the cloud enables is computing to empower cancer researchers.
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>> one of biggest and most important questions investors have been asking themselves when the federal interest rates, many are predict will be later this year but not the "oracle of
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omaha," warren buffett. this is what he told liz claman in a fox business exclusive. >> i think it will be very tough to raise rates with what is going on around the world. europe has them at zero and you have rates higher in the united states that would exacerbate stronger dollar an fund flow. i think they have a very tough, would be very tough for them to raise rates. david: would be very tough on warren. a lot of his businesses if they did raise rates. he is talking his book. catch the entire interview on >> if you are an investor how do you plan around uncertainty after fed rate hike? david: who better to ask than charles payne. he is checking his computer on gopro. it was practically down to zero after-hours. it killed it. they polled a 100 economist a
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year ago. everyone said interest rates are going up. everyone were wrong. it's a tough thing to predict. >> it's a tough thing to predict. look at trade data, that was the biggest jump in a long time. to warren buffett's point, we are getting crushed with this trade with the strong dollar. every company that reported hey, the strong dollar is killing us. some are major, major. tomorrow we get jobs report. i think wages will have to start moving. unofficially the fed is looking at europe in consideration, housing market in consideration. the official mandate is jobs and inflation. they're looking into a whole lot of other things. janet yellen telegraphed that. i find it interesting after fomc meetings, for sure, the fed said spring. where did they say that? david: no inflation? >> just anytime, when you go to breakfast tomorrow, anyone can tell you there is inflation. starts at beginning of the day
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all the way through. >> you have a big show tomorrow night. you will be live in orlando, florida, at the money show. >> yes. >> called the money show. a huge audience. 500 people. they will ask you whatever they want to ask you. what will come up? >> that is very exciting. i used to take my company every year. i spoke in front of 3,000 people. they say it will be 700 tomorrow. i think we'll hit it. they want to be in control of their investing lives. to your point they want to filter out this stuff. at end of the day i'm 40 years old. i don't care if the fed raising rates next week. i want to own quality american companies and live in my golden years and have my kids a honest shot in this country. david: you are patriotic. watch your show at 6:00 p.m. >> lots of earnings to go through besides gopro, guys. david: absolutely. an important night to see charles. we've been asking you if you
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think the government should have the power to regulate the internet? we have a lot of responses on this. starting with van, who says hands off anytime anytime the government is involved, innovation is diminished and costs increases. >> he said as pink floyd would say, hey, sec, leave my internet alone. david: pink floyd. i like reference. mike said the current federal government is not capable of regulating a thermostat. i like that. >> he says net neutrality equals net neutered. david: that kind of hurts. michelle says, no, government can not resist anything that is not in their control. they will destroy the internet in the name of fairness. >> heated topic. look at earnings. after-hours, linked in. the stock is trading higher. closed at 237.97. ask is 253 and change.
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there is twitter. moving higher as well. david: eight, almost 9% after hours. gopro is down after-hours. big change in fortunes. "the willis report" is next. >> hello, everybody, i'm gerri willis and this is the "willis report," the show where consumers are our business. the bombshell in the white house's new budget. for the first time we see massive cost of the president's bailout of students drowning in debt. health insurance giant hit by hackers. this time the bad guys hit the mother load, social security numbers. >> we're talking tens of millions of people who would have had information. social security number, birthday, addresses stolen. gerri: the race is on to contain the latest measles outbreak. the law calling some kids to be banned from school. >> recent trend not vaccinating students puts other students and staff at risk. gerri: don't miss out.


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